Air Compressor Market Size, Share & Industry Analysis By Mode of Operation (Rotary, Centrifugal, and Reciprocating), By Product Type (Stationary, and Portable), By Lubrication (Oil-Filled, and Oil-Free), By Application (Manufacturing, Oil and Gas, Energy and Power, Electronics and Semiconductor, Healthcare, Food and Beverages, and Others) and Regional Forecast, 2021-2028

The global air compressor market size was valued at USD 15.46 billion in 2020 and is projected to reach USD 22.27 billion in 2028 from USD 15.88 billion in 2021, growing at CAGR of 4.9% during the forecast period. Based on our analysis, the global market exhibited a huge decline of -5.4% in 2020. The global impact of COVID-19 has been unprecedented and staggering, with air compressors witnessing a negative demand across all regions amid the pandemic. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The increasing need for products with better operational output and efficiency in operation is the main concern that the manufacturers are trying to address in the global market. The market players are manufacturing oil-filled rotary compressors where a robust compressor is required. These key players are also engaged in manufacturing oil-free air compressors where a lightweight, cost-effective and low on maintenance cost compressor is required. The considerable demand for energy and power, manufacturing, and the oil and gas industry will pivot the development of the market across the different regional markets.

COVID-19 to Impede Opportunities for Strengthening of Market Supply Chain

The COVID-19 pandemic has caused significant disturbances and negatively affected the market. The limited workforce available during the pandemic has negatively impacted the market growth. Global trade restrictions have hindered market growth.

The supply chain operations disruption of the market has also resulted in declined market activities globally. The restrictions on the transportation of non-essential goods and commodities obstructed the supply of compressors at various high-demand locations. The breakdown of conveyance facilities and the unavailability of established supply channels has curbed the development prospects of the market.

LATEST TRENDS

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Increasing Procurement of Rotary Screw Compressors is a Prominent Trend

Extensive new installations of rotary screw compressors and replacement of conventional compressors with rotary compressors are increasing the sales of compressors in the global market. The rotary screw compressors provide better energy efficiency and have better operational reliability. Increased integration of these compressors in manufacturing facilities and application of rotary air compressors are the emerging global market across the globe.

The efficient and reliable performance of these compressors helps to manufacture facility operators to achieve considerable augmentation in productivity with a reduction in operational cost. For instance, in 2017, Ingersoll Rand introduced next-generation R-Series rotary screw compressors with 13 percent energy-efficient operation and variable speed drive.

Additionally, apart from the efforts of the companies to meet energy optimization standards, stringent rules and regulations imposed by the governing authorities in different regions are encouraging the facility operators to deploy rotary screw compressors to meet prescribed performance targets.

DRIVING FACTORS

Innovative Manufacturing Infrastructure of Modern System to Dictate Market Growth

Manufacturers across the globe are motivated to develop technologically updated, atomized and state of the art technology integrated manufacturing facilities. The manufacturers are using high-end compressors that can provide high energy throughput and provide more output for the consumers. The introduction of high-performance portable air compressors will be utilized as portable equipment at the facilities.

Application of oil-free and oil-filled compressors segment as per the requirement of the industry operations will also provide new improvement avenues for the market. This, in turn, is expected to bolster the air compressor market growth during the forecast period.

Requirement of Highly Durable Compressor for Drilling Procedures to Spur Market Growth

With an increment in the use of machinery and equipment across numerous end-use sectors and considerable development in the manufacturing sector, the requirement for crude oil and renewable resources has increased at a substantial pace. Currently, there is a consumption of 95 million barrels across the globe. To satisfy the global requirements, harnessing the oil using efficient equipment and advanced technology has become of perennial importance.  Thus, the application of products capable of withstanding adverse environments is anticipated to propel the demand for these products in the global market.

RESTRAINING FACTORS

High Installation Cost of Modern Compressors to Hinder Market Growth

The installation of modern rotary screw compressors incurred high initial procurement and installation cost. The increased expenses on the ay deter traction of customers towards these products. These compressors also require frequent maintenance and servicing for proper functioning and efficient operations. Additionally, higher complexity in design, installation, and operations makes the deployment of skilled and experienced operators essential for the smooth and hassle-free operation of the system.

Moreover, the user also needs to maintain minimal everyday use of the compressors to avoid problems such as condensate forming and rust formations. The scheduled maintenance of the compressor machine and proper supervision of the complex system increases the maintenance cost of the processes, thus reducing the profitability to some extent.

SEGMENTATION

By Mode of Operation Analysis

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Ability to Generate Greater Operational Output Paves the Way for Progress of Rotary Segment

By mode of operation, the market is classified into rotary, centrifugal, and reciprocating.

According to our analysis and current preference of the customers operating in numerous end-user industries, the rotary segment is projected to emerge as the leading segment in the global market. The operational benefits offered by the rotary compressors and their robust built quality are the factors pivoting the swift growth of the segment across diverse geographies.

The introduction of new and stricter energy efficiency standards by the governments and concerned authorities to increase the output efficiency and promote energy optimization is increasing the demand for rotary compressors across the global market. Most of the consumers are also striving to augment the energy efficiency of their systems to have better profitability which is increasing the influx of consumers towards these products. However, the cheaper price of reciprocating compressors is the only factor that helps the segment to maintain its share in the market. However, exhaustive research and development operations and the introduction of innovative products by the leading market players will help the rotary segment expected to boost its share and hence fortify its dominance in the global market.

By Product Type Analysis

Stationary Compressors to Dominate Market

By product type, the market is segmented into stationary and portable, where the stationary compressor is expected to hold a major share across the globe. However, in terms of growth, the portable segment is projected to display significant growth in the market.

The use of high-capacity compressors in the manufacturing, oil and gas, energy, and power generation industry is propelling the incorporation of stationary air compressors in industrial applications. The increased mechanization and integration of automated machinery in the manufacturing sector boost the demand for stationary-type products. Also, the application of stationary type compressors has application in a wide array of industries which is bolstering the sales of the stationary segment in the global market.

By Lubrication Analysis

Robust Built Quality of Oil Filled Segment to Dictate Promising Growth Pace

By lubrication, the global market is categorized into oil-filled and oil-free.

In terms of air compressor market share and in development prospects oil-filled segment is projected to outpace the oil-free segment in the global market. The higher application of oil-filled compressors in intensive industrial applications and the ability to provide larger output are the two factors crucial for the progress of the oil-filled segment.

Oil-filled segments are used in heavy-duty applications due to their reliability and ability to withstand the adverse environment.  The robust built quality and durable design provide the ability to provide higher operational output and provide air at a better rate. The ability to operate at a higher capacity makes the application of oil-filled compressors more suitable for industrial applications. The availability of these compressors at a relatively lower price is another factor contributing to the wide application of these compressors in medium and small-scale industrial applications. Although, maintenance-free operation and lesser risk of contamination are some of the pros of oil-free compressors, which are expected to pivot the growth of the oil-free segment in the market.

By Application Analysis

Manufacturing Sector to Attain Significant Share in Market

By Application, the global market is further segmented into Manufacturing, Oil and Gas, Energy and Power, Electronics and semiconductors, Healthcare, Food and Beverages, and Others.

Amongst the aforementioned applications, the manufacturing sector is anticipated to hold a prominent share in the global market.

Increasing standards of atomization in the manufacturing sector, and the development of newer and highly machined manufacturing facilities spurring the requirement for compressed air manufacturing segment in the global market.  Also, over the past decade, manufacturing facility operators witnessed intense market competition and a need to increase manufacturing output. The innovative equipment can reduce power consumption and develop a cost-effective operational ecosystem, increasing the inclination of the manufacturing facility operators towards the procurement of new equipment for the facility.

REGIONAL INSIGHTS

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The Asia Pacific is expected to develop at a substantial pace in the global market during the forecast period. The development of the market is mainly due to the increasing atomization and mechanization of the manufacturing facilities across the developing nations within the regions.

The manufacturers are also taking a keen interest in the opportunistic markets of India and Japan; their efforts mainly involve the development of manufacturing facilities and the establishment of well-established supply chain operations within the region. Additionally, in the recent past, most consumers from various end-use industries have been looking to invest in the emerging economies in the Asia Pacific region, which is pivoting the development of manufacturing clusters across those regions, increasing the sales of products for the manufacturing industry. A developed and highly operational mining industry in Australia will foster the growth of the Asia Pacific region.

India Expected to Observer Significant CAGR with Development of Modern Manufacturing Facilities

India is estimated to register the fastest CAGR owing to the establishment of flourishing end-use sectors such as manufacturing, energy and power and oil gas industries. The increasing market share of the indigenous manufacturers in the regional market and also increasing manufacturing of foreign players in the domestic market of India are bolstering sales of compressors within the region.

Moreover, the efforts put in by the government to improve transparency in government projects of oil & gas and energy & power generation sector has improved the payment cycles which facilitates easy business for the domestic as well as international manufacturers. Elgi Equipments is identified as a prominent market player in the regional market of India, and is India is striving to develop sales footprints across the global market.

The increasing trend of replacing the old compressors in the manufacturing facilities and installing modern products has increased the sales of innovative technology integrated products across North America. According to the statistics published by U.S. Department of Commerce reports, the annual shipment of replacement and new compressors is valued at about USD 3.3 billion.

Additionally, the development in the market is spearheaded by the U.S. due to the hefty investments made by many market players in the country to establish themselves in the region as a prominent vendor. With an increased demand for modern products and the trend of old compressor replacement, the region of North America is expected to reach beyond USD 4.5 billion by the end of 2025.

In Europe, the implementation of the legislation by the European Union regarding the operational efficiency of the compressors and increasing development of compliance standards fostering sales of new products in the market. Manufacturers are launching new and advanced products fully compliant with current regulatory standards to increase the traction of the customers towards their products.

To initiate operations in the European Union, manufacturers need to comply with diverse legislation such as the Pressure Equipment Directive (PED), Electromagnetic Compatibility Directive (EMCD), Ecodesign for compressors, Machinery Directive (MD), Low Voltage Directive (LVD), Outdoor Noise Directive (OND), amongst others. Thus, to venture into the European market, all the manufacturers are making hefty investments in the R&D division to design and develop highly efficient products for the said regional market.

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The development in the market of the Middle East and Africa will mainly be catered by the Kingdom of Saudi Arabia and Turkey. The high oil exploration activities in Saudi Arabia and considerable augmentation in the development of the manufacturing clusters in Turkey will drive the market growth. The growing demand for crude oil and the limited supply intensify the pressure on resource-rich countries such as the Kingdom of Saudi Arabia to effectively elevate their production by deploying high-quality machinery and efficient equipment.

KEY INDUSTRY PLAYERS

Leading Companies to Focus on Collaborations and Joint Ventures

The global manufacturers operating in the market are focused on the development of diverse product portfolios integrated with novel technologies and innovative products to attract customers from numerous industries towards their products. Most of the consumers demand products that address their specific requirements and can be highly efficient in the installation environment.

Most of the manufacturers are further aiming to strengthen their distribution network and augment the direct customer air compressor industry in the regional market to gain a loyal customer base in the respective market. The companies are venturing into partnership and supply agreements with distributors and are making special efforts to acquire regional market players with great growth potential in their regional markets to have better market penetration and achieve growth in untapped; thus an opportunity to reach regional markets.

LIST OF KEY COMPANIES PROFILED:

• ELGi Equipments Limited (Coimbatore, India)


• Atlas Copco AB (Nacka Municipality, Sweden)


• Sulzer Ltd. (Winterthur, Switzerland)


• Hitachi Ltd. (Tokyo, Japan)


• Ingersoll Rand (North Carolina, U.S.)


• Campbell Hausfeld (Ohio, U.S.)


• Mitsubishi Heavy Industries Ltd. (Tokyo, Japan)


• Doosan Infracore Portable Power (North Carolina, U.S.)


• Kirloskar Pneumatic Company Limited (Pune, India)


• Elliott Group Ltd. (Pennsylvania, U.S.)


• Siemens AG (Munich, Germany)


• MAN Energy Solutions (Augsburg, Germany)


• Bauer AG (Schrobenhausen, Germany)


• EBARA CORPORATION (Tokyo, Japan)


• Embraco LLC (Joinville, Brazil)


• KAESER KOMPRESSOREN (Coburg, Germany)


• AREA COOLING SOLUTIONS SA (Barcelona, Spain)


• BITZER Group (Sindelfingen, Germany)


• Indo Air (Gujrat, India)


• Vortex Compressor (Ankara, Turkey)


• Yiğitsan Compressor (Istanbul, Turkey)


• ALMiG Kompressoren GmbH (Köngen, Germany)


• Chicago Pneumatic Air Compressors (Chicago, U.S.)


• Quincy air compressors (Alabama, U.S.)


• BAC Compressors (Tamil Nadu, India)

KEY INDUSTRY DEVELOPMENTS:

• August 2019: Atlas Copco has recently introduced its newly developed and innovative range of compressors, especially for the small and medium scale industries. The products are developed to reduce energy consumption and elevate the production output of the company. The newly inducted products will develop the diverse product portfolio of the company and will help to attract a wide range of customer base towards products


• February 2021: Sullair, one of the prominent manufacturers of compressors, has launched Mid-Range Series Portable Compressors, integrated with Electronic Spiral Valve Technology. The product will provide better flexibility and higher efficiency in operations. The portable equipment and smaller engine size of the product provide exceptional maneuverability and ease in towing operations for the customers.

REPORT COVERAGE

An Infographic Representation of Air Compressor Market

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The global air compressor market report provides an in-depth analysis of the market dynamics and competitive landscape. It provides various key insights, including recent industry developments in the market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.

Report Scope & Segmentation